State · LIHTC 2026
LIHTC in Tennessee: 2026 allocations, QAP and data
Tennessee Housing Development Agency (THDA) allocates Tennessee's housing tax credits. The population-based part of Tennessee's 2026 9% credit ceiling, before carryforwards and returned credits, is $24,988,300. That is $3.416 times 7,315,076 residents. Its 2026 private activity bond cap, which 4% deals compete for, is $987,535,260 ($135 per person).
Agency and qualified allocation plan
| Allocating agency | Tennessee Housing Development Agency (THDA) |
|---|---|
| Tax credit program page | THDA LIHTC page |
| Current QAP | Low-Income Housing Tax Credit Program 2026 Qualified Allocation Plan (2026) |
| QAP status | Board approved Sept 23, 2025; Governor approved Dec 17, 2025. 2027 QAP posted as approved July 2026 (file text still shows draft headers): thda.org link |
Agency and QAP links checked 2026-10-30.
2026 credit ceiling and bond cap
| Item | 2026 | Per resident |
|---|---|---|
| Population (IRS Notice 2026-22) | 7,315,076 | 15th of 52 |
| 9% ceiling, population amount | $24,988,300 | $3.42 |
| Formula | greater of $3.416 × pop or $3,953,600 | per-capita applies |
| Private activity bond cap | $987,535,260 | $135.00 |
| Formula | greater of $135 × pop or $397,625,000 | per-capita applies |
Sources: IRS Rev. Proc. 2025-32 secs. 4.08 and 4.19 (the 9% amounts already include the 12% increase from Pub. L. 119-21 sec. 70422); IRS Notice 2026-22 (2026-15 I.R.B.). Computed by us and rounded to the dollar; agencies may round differently.
Only the population amount is shown. The full 2026 ceiling adds credits unused from 2025, credits returned by projects and any share of the national pool, which the agency reports in its allocation materials. See every state side by side on the 2026 ceilings and bond caps table.
Basis boost areas: 2027 QCTs and DDAs
HUD's 2027 lists, which apply from January 1, 2027, put 267 Tennessee census tracts in qualified census tracts, spread across 57 counties. 1 nonmetropolitan county is a difficult development area. In metro areas, 33 ZIP code areas (ZCTAs) are Small Area DDAs. A building in either can take 130% of eligible basis. Check an address with the QCT and DDA lookup.
| County | 2027 QCT tracts |
|---|---|
| Shelby County | 75 |
| Davidson County | 27 |
| Knox County | 25 |
| Hamilton County | 14 |
| Madison County | 9 |
Nonmetro DDA counties: Sevier County.
Metro areas with Small Area DDAs: Chattanooga, TN-GA MSA; Jackson, TN HUD Metro FMR Area; Knoxville, TN HUD Metro FMR Area; Maury County, TN HUD Metro FMR Area; Memphis, TN-MS-AR HUD Metro FMR Area; Nashville-Davidson--Murfreesboro--Franklin, TN HUD Metro FMR Area; Smith County, TN HUD Metro FMR Area.
Every Tennessee qualified census tract, with its population, poverty rate and median income, is on the Tennessee QCT list by county.
Source: HUD 2027 QCT and DDA designations, FR Doc. 2026-20390 (91 FR 63573, Oct. 6, 2026).
Tax credit properties in Tennessee
HUD's database lists 736 Tennessee properties financed with housing tax credits that the allocating agency still monitors, with 65,592 income-restricted units. The largest city totals are below; see all cities on the Tennessee apartments page.
| City | Properties | Restricted units |
|---|---|---|
| Memphis | 109 | 13,580 |
| Nashville | 72 | 9,771 |
| Knoxville | 59 | 6,077 |
| Chattanooga | 34 | 2,945 |
| Kingsport | 17 | 1,704 |
| Murfreesboro | 14 | 1,570 |
| Jackson | 16 | 1,318 |
| Antioch | 8 | 1,292 |
| Clarksville | 15 | 1,269 |
| Gallatin | 11 | 1,234 |
| County | Properties | Restricted units |
|---|---|---|
| Davidson County | 96 | 13,612 |
| Shelby County | 108 | 13,445 |
| Knox County | 62 | 6,207 |
| Hamilton County | 38 | 3,358 |
| Rutherford County | 23 | 2,644 |
| Sullivan County | 17 | 1,626 |
| Sumner County | 17 | 1,606 |
| Wilson County | 13 | 1,501 |
| Madison County | 16 | 1,318 |
| Montgomery County | 14 | 1,189 |
For buyers and lenders: the Tennessee Year 15 and Year 30 list shows which of these properties reach the end of the compliance period or the 30-year extended use minimum from 2022 to 2034, by county.
Source: HUD's national LIHTC database (LIHTCPUB, revised May 28, 2026; projects placed in service through 2024). City pages cover cities with at least five properties; county links go to that county's 2026 income and rent limits.
Financing a LIHTC deal in Tennessee
A 9% deal in Tennessee competes for THDA's 2026 ceiling of $24,988,300 (population amount) under the Low-Income Housing Tax Credit Program 2026 Qualified Allocation Plan. A 4% deal needs an award from the state's $987,535,260 private activity bond cap: tax-exempt bonds must finance 50% of the aggregate basis of the building and land, or at least 25% if one or more of those bonds, from an issue dated after December 31, 2025, together finance at least 5% of that basis (the 25% bond test, for buildings placed in service in taxable years beginning after December 31, 2025). Sites in Tennessee's 267 qualified census tracts for 2027 can take the 130% basis boost.
On HUD's records for the 547 Tennessee properties on this site's city pages, 5% of those reporting the field were financed with tax-exempt bonds and 79% took 9% (70% present value) credits; 161 received allocations in 2015 or later.
Sources: IRS Rev. Proc. 2025-32; HUD 2027 QCT list; HUD's national LIHTC database (LIHTCPUB, revised May 28, 2026; projects placed in service through 2024), bond and credit-type fields. What to read in a QAP: state LIHTC programs. Sizing a Tennessee deal: get a financing quote.
State housing tax credit
Not confirmed. Rural and Workforce Housing Tax Credit enacted 2024 (Tenn. Code 13-23-134, cap $17M a year) but credits need yearly General Assembly authorization; 2026 funding not confirmed.
More Tennessee data
- Tennessee 2026 income and rent limitsby county
- Tennessee tax credit apartmentsby city
- Tennessee QCTs and DDAs2027 lists by county
- Year 15 and Year 30 propertiesby county
- QCT and DDA lookupby address
- Monthly credit ratesIRS
- LIHTC in South Dakotaprevious
- LIHTC in Texasnext
- All statescompare
Questions people ask
How much 9% LIHTC does Tennessee get in 2026?
The population part of Tennessee's 2026 housing credit ceiling is $24,988,300: the greater of $3.416 per resident or $3,953,600, applied to the 7,315,076 population in IRS Notice 2026-22. The agency's actual 2026 authority also adds unused and returned credits and any national pool share, so its own published figure can be higher.
Who allocates housing tax credits in Tennessee?
Tennessee Housing Development Agency (THDA). It awards 9% credits under its qualified allocation plan (Low-Income Housing Tax Credit Program 2026 Qualified Allocation Plan, 2026) and sets the rules 4% bond deals must meet to receive credits.
Does Tennessee have a state low-income housing tax credit?
We could not confirm one from the agency or the statutes as of October 2026. Rural and Workforce Housing Tax Credit enacted 2024 (Tenn. Code 13-23-134, cap $17M a year) but credits need yearly General Assembly authorization; 2026 funding not confirmed.
Financing a Tennessee tax credit deal?
Construction, bond, bridge-to-equity and permanent debt for Tennessee 4% and 9% deals.